T R Radhakrishnan, Chairman, Association of Planters of Kerala (APK)

Kerala’s plantation sector is navigating a year of sharply divergent fortunes, with strong prices for natural rubber and coffee offset by climate-related production losses and continued pressure on tea and cardamom, according to the Association of Planters of Kerala (APK).

The assessment that comes ahead of APK’s 87th annual general meeting said the sector’s immediate focus would be on converting favourable price movements into longer-term stability while addressing rising production costs, climate risks and market uncertainties.

T R Radhakrishnan, Chairman, APK, said that natural rubber prices have risen from around ₹185 to ₹217 a kg, while coffee parchment prices have increased by more than 20 per cent. However, the price gains have been accompanied by lower output in both crops following erratic weather and lingering El Niño-related climate stress.

The higher prices, according to him, should not be viewed entirely as a windfall, as part of the gains have compensated for reduced crop availability. The planters’ body has urged growers to use improved margins to invest in climate resilience, quality improvement and processing.

Tea troubles

Tea has faced a different set of challenges. While production has remained relatively stable, prices have been weakened by excess supply, subdued demand and a slower export market. It was encouraging growers to focus on quality and value-added products while engaging with the Tea Board on measures to improve price realisation.

Cardamom, meanwhile, experienced a brief export surge before prices softened as domestic production recovered, he added.

At the same time, external developments are adding to the uncertainty. The earlier US tariff action had affected exporters, although a partial rollback had provided some relief. It is also monitoring proposed US legislation concerning tariffs on countries importing Russian oil. The implications would depend on whether the legislation becomes law and how it is implemented.

Disruptions around the Strait of Hormuz have also increased freight costs and affected shipping schedules for tea and premium cardamom exports. APK has advised exporters to coordinate closely with shipping lines, build flexibility into schedules and explore more resilient logistics options.

The association is also preparing for stricter European sustainability and traceability requirements for natural rubber and coffee. It is working with the Rubber and Coffee Boards and member estates on geolocation mapping and documentation needed for compliance.

Human-wildlife conflict remains another major concern and the APK has proposed a structured compensation mechanism for crop losses caused by wild animals, modelled on motor insurance, with a simpler and time-bound claims process.

On land policy, APK demanded that plantations, farmland and settlements to remain outside the proposed Ecologically Sensitive Area limits. It has also sought a review of plantation exemptions under Land Reforms to permit legitimate diversification.

Published on September 21, 2026